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Spanish Bailout Imminent

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Its been coming a long time, but with rising bond cost a bank bailout and worsening economy it’s just a matter of time now for Spain to formally look for a bailout. It looks as if that has been discussed at the G20 meeting if you read between the lines. Time will tell but I believe Mario Monit’s quote below sums it up. The Slog discusses as follows:

WORDS: “The G20 wishes to express its alarm about the eurozone crisis”

(Opening statement)

“We can see that the markets are not convinced. We must draw up a definitive and clear road map with concrete actions that make the euro more credible.” (Mario Monti)

With Spain perhaps days away from requiring a full sovereign bailout, its bond yields rising above 7%, persistent rumours of a time bomb waiting to go off inside La Caixa, and Slog sources in Madrid of the opinion that “a full bailout is imminent, there is not a chance Rajoy can beat the markets. A total bailout is now unavoidable”, the anodyne quotes from Mexico floated unsteadily about like ethereal gloop on the air.

The Slogs source in Spain commented as follows:

“Spain can only wait another two weeks, unless Rajoy gets some under-the-table money from the [European] Central Bank. That’s possible of course, you never know any more.”

It seems hard to imagine that any money coming from that direction will be real: given that Greece was bailed out with some paper signed by Mario Draghi, the best Madrid could hope for would be some used Frankfurt bus tickets.

Finally, here is one I wasn’t expecting.

Is there any upside? Oddly enough, yes, there is: at long last – with the time at 3 seconds past midnight, Scameron is hinting darkly at moving away from european markets, and re-establishing a strong commonwealth relationship. This tells us just how impossibly bad things are in the eurozone, and that the EU as we know it today is crumbling into dust. For our Prime Minister lacks the courage to back anything that isn’t a certainty. (Except the rapidly disappearing HS2, of course).

 

 

 

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Irish Finance Minister Answers Questions On Bilderberg Meeting

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“Nothing to see here Guv, move along”. That was pretty much Michael Noonan’s response when asked what the hell was he doing at a Bilderberg meeting at the start of the month. The questions were put to the Finance Minister in a Dail (Irish Parliment) session. His response can be found on the Dail website from 12 June 2012.

I attended the Bilderberg meeting in Westfield Marriot, Chantilly, Virginia, USA, from 1 to 3 June 2012. I, like a number of my European colleagues (both Ministers and EU Commissioners), was invited to attend given my position as Minister for Finance. I travelled alone and the total cost associated with my travel and accommodation came to €4,358.33. For further information, I would point Deputies to the Bilderberg Meetings website (www.bilderbergmeetings.org), which includes information on the organisation’s governance, steering committee, meetings and associated press releases. At this meeting and its workshops I took the opportunity to set out to my fellow attendees the opportunities that exist in Ireland for investors and multinational companies. I also outlined the significant progress Ireland is making in restoring stability and growth to the economy.

The Government is focussed on encouraging as much investment as possible into Ireland and over recent months we have seen the strong level of inward investment in our economy and have seen the announcement of over 1,000 jobs per month from Foreign Direct Investment so far this year. I would point out to Deputies that a number of the business attendees represent companies which have very significant investments in Ireland that support thousands of Irish jobs.

The Bilderberg (steering committee for the worlds ruling elites), I’m sure would have no interest in a sarcastic fat Irish ex school teacher giving them an update on the economy. I could give them that update (we’re fucked) ;-). Sorry Michael, but you do have a track record for bending the truth. He joins a long list of people from his own party Fine Gael who have attended meetings including Peter Sutherland, Dermot Gleeson, Paul Gallagher, Garett Fitzgerald and Michael McDowell (yes originally in the Fine Gael party).

Go on Michael, what were you really there for ???? Why is there no transparency?

In an attempt to play down the conspiracy theories around Bilderberg, in Ireland the Irish Times newspaper wrote a small article explaining that Michael Noonan simply attended a 3 day conference. Quite significant was the fact that up until this point, the MSM in Ireland had appeared to have a blanket ban on discussing all things Bilderberg.

For further background, listen to following clip from BBC including how they created all major european institutions.

Source: OireachtasDebates, Irish Times, Wikipedia, UCD

Euro Crisis – Technical analysis

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Eurozone, forget the analysis, its a no brainer 😉

Brutal austerity + toxic levels of government debt + rising bond yields + a lack of confidence in the financial system + banks that are massively overleveraged + a massive credit crunch

=

A financial implosion of historic proportions.

!

source: Activist Post

EU To Force Pension Funds To Buy Toxic Sovereign Bonds

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Spanish Bonds this week have hit over 7% for the 10 year and Italy’s bonds have also increased but the EU is looking for new and devious ways to fund them.  They now want to introduce new rule to force your  pension fund to use 20% to buy shite sovereign bonds.The Daily Mail reports on how it will affect UK pension holders.

Millions of people could see the value of their pensions slashed by up to 20 per cent because of new EU rules. Those with a £100,000 pension fund could be more than £1,100 per year worse off in retirement because of the reforms, research has shown.

The Solvency II rules, which are due to come into effect in January 2014, will force pension funds to hold a higher proportion of ‘safe’ Government bonds. As the bonds – called gilts – have such low rates of return it will drive down the returns on retirement fund annuities, which are used to pension income.

The reforms are designed to make pension funds safer and reduce the risk of them going bust. Annuities, which set retirement income for life, have already fallen to historic lows because of the impact of quantitative easing.At present, a p ension annuity fund may invest 20 per cent in low-yield gilts and the rest in riskier corporate bonds which have a higher rate of return.

But under the new EU rules, annuity funds will be forced to hold a higher percentage of gilts.

New research by Deloitte suggests annuity rates will plunge by between five and 20 per cent when the directive comes into force in January 2014. A £100,000 pension pot currently gives an income of £5,837, but once the regulations come into effect they will be between £292 and £1,167 a year worse off.

The return on government bonds has fallen in value because the Bank of England’s quantitative easing programme has involved buying them up to inject an extra £325bn into the economy and investors are moving their funds from risky countries like Greece to Britain. This extra demand drives up their prices but consequently means that interest rate yields plunge.

Yields have fallen to historic lows, and the situation could get worse.

Its bound to have a devastating affect on pension returns as the debt situation can only get worse.

‘The EU rules will make the value of pensions fall further. Its a series of pieces of bad news for British pensioners.’ As a result of these rules everyone will get much less pension out of their fund. We don’t know exactly how much less.’We are anxious that the UK Government should stand up for UK pensioners.’ She added that plunging annuity rates are putting young people off saving for retirement.

In a double-whammy for male pensioners, new rules banning gender discrimination could hit retirement incomes. At present, men get higher annuities because of their shorter life expectancies.

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